Good afternoon, wonderful people. We’re off to a roaring start this first full workweek of the month — so much for that breather we had prophesied.

THE BIG STORY TODAY

Egypt’s non-oil private sector contracted in May for the 18th consecutive month as inflationary pressures continued to weigh on spending, according to the S&P Global purchasing managers’ index survey (pdf). Business activity contracted at a slightly slower pace during the month, with the index inching up to 47, up from 46.9 in April. Activity remained below the 50.0 mark that separates expansion from contraction.

^^We’ll have more details on this and other stories in tomorrow’s edition of EnterpriseAM.

Recapping the Islamic Development Bank’s (IsDB) annual meetings: The Islamic Development Bank’s annual meetings in Sharm El Sheikh wrapped up yesterday, bringing to a close the four-day event — which Enterprise attended — that saw policymakers and business leaders focus on climate change action. A key takeaway for us: The Madbouly government is looking to focus on broader policies and national strategies in the shift towards a green economy, said Planning Minister Hala El Said. The government is currently preparing strategies for hydrogen and water resources as part of its push to encourage the transition to a green economy. The government is also making sure that inclusive growth and the core principle of “leaving no one behind” are part and parcel of its policies, El Said said. Read our recap of a panel discussion on catalyzing growth through green finance for more details.

The meetings also saw the government and local private sector players sign a total of 13 agreements over the weekend, including six MoUs between the Islamic Corporation for the Development of the Private Sector and Sarwa Capital, FAB Egypt, and Faisal Islamic Bank to issue sukuk, on-lend to SMEs, and spur private sector involvement in the economy.

THE BIG STORY ABROAD

Russia launched airstrikes on Kyiv this morning for the first time in five weeks, ending the eerie sense of calm that had started taking shape in Ukraine’s capital, the Associated Press reported. Russia said it destroyed tanks donated from abroad, as President Vladimir Putin warned that more “targets” would be struck if Western deliveries of long-range rocket systems were to continue, without identifying what those targets could be. The renewed attack comes days after the US announced plans to deliver USD 700 mn in additional security assistance for Ukraine. The story is getting wide play in the international press this afternoon: Reuters | New York Times | CNBC.

HAPPENING NOW-

Trade and Industry Minister Nevine Gamea is at the House of Representatives to answer MPs’ questions on government plans to boost investment in industry, improve the business environment for manufacturers, and localize certain sectors including the automotive industry. Among the questions and topics MPs are broaching with the minister: The status of producing our first local-made EV; the government’s decision to raise the customs exchange rate and whether the move was designed to limit automotive imports; the industrial partnership between Egypt, Abu Dhabi, and Jordan — details on which are scant so far; and several issues pertaining to local industry such as land and license allocation and access to services.

Egypt is prepared to step up its health services cooperation with other African countries, President Abdel Fattah El Sisi said at the Africa Health ExCon, which kicked off earlier today and runs until this Tuesday. El Sisi stressed that “Africa is the future” thanks to its young population, but that providing adequate health services to the continent’s population requires financing and innovation (watch, runtime: 20:10).

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Egypt is finalizing some USD 3.5 bn in fresh financing from multilateral lenders to shore up food and energy security amid ongoing disruptions to global markets. Cairo is hoping to receive USD 3 bn from the ITFC and USD 500 mn from the World Bank.
• Food-for-fertilizer swap with India? Egypt is in talks to export fertilizer and other products to India in exchange for the 500k tons of Indian wheat we’ve been hoping to secure.
• Policymakers expressed disappointment about climate finance and pledges at IsDB annual meetings in Sharm El Sheikh last weekend, with officials condemning the lack of action and broken promises.

???? CIRCLE YOUR CALENDAR-

IN THE HOUSE THIS WEEK- Tackling pollution + mud tax. The House of Representatives is holding plenary sessions today through at least Tuesday. On the docket:

• Environment Minister Yasmine Fouad is in the House tomorrow to talk tackling pollution in our waterways, beaches, and natural reserves.
• Mud tax talks: Tuesday will see discussion of reports on potentially extending the suspension of a 14% tax on agricultural land for an additional year to July 2023.

ALSO THIS MONTH- Gas agreement with the EU this month? Egypt and Israel will sign an agreement with the EU this month to increase LNG exports as the bloc scrambles to find new suppliers and unwind its dependence on Russian gas, according to a draft document seen by Bloomberg. The two countries are expected to come to an agreement when European Commission President Ursula von der Leyen visits Egypt this month, the business newswire said. Bloomberg reported last month that the plan would see Israel increase natural gas exports to Egypt’s LNG facilities, from which the gas would be shipped to Europe.

NEWS TRIGGERS you’ll want to keep an eye on as the new month gets underway:

• Foreign reserves figures for May should be announced sometime this week;
• Inflation figures for May are due out on Saturday, 9 June (from state statistics agency Capmas) and Sunday, 12 June (central bank figures);
• The Central Bank of Egypt holds its policy meeting on Thursday, 23 June.

Technology conference Tech Invest 4 will take place this Tuesday, 7 June at the Grand Nile Hotel in Cairo.

LATER THIS MONTH- The Aswan Forum for Peace and Sustainable Development is scheduled (pdf) for Tuesday and Wednesday, 21-22 June under the theme Africa in an Era of Cascading Risks and Climate Vulnerability: Pathways for a Peaceful, Resilient and Sustainable Continent. You can register for the event here.

NEXT MONTH- Follow-up on the Egypt-UAE-Jordan industrial partnership: Egypt, the UAE and Jordan will meet in Cairo in July to follow up on the industrial partnership agreed last week in Abu Dhabi, the Egyptian Trade Ministry said in a statement Friday. Bolstered by USD 10 bn in investment from ADQ, the initiative will look to support sustainable economic growth and increase industrial production by channeling finance into industrial projects in the three countries.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- Expect a daytime high of 37°C tomorrow and a nighttime low of 22°C, according to our favorite weather app.